Financial Accounting for Shaver Shop: Unisex Grooming Retailer in Australia

Running head: FINANCIAL ACCOUNTING
Financial Accounting
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1FINANCIAL ACCOUNTING
Introduction
Shaver Shop is the retailer in Australia, the company is specialized in those products
that are needed for unisex personal grooming. The company aims to be the leading retailer in
the market in hair removal products. The expected to have 100 stores all across Australia
including New Zealand in the end of year 2016. The company runs its online store for selling
its goods. The price of the product is too modest depending upon the varieties of products.
The information that is available about the company including the record of healthy path
under the single section of grooming that grants permission for converting it by dealers.
Shaver Shop practicalities products on or after primary manufacturers who ascertain to create
practical and progressive provides to give a chance to purchaser’s needs together with
necessities in the hair exclusion along with separate preservation formation groups. The
Corporation’s vital creation variability comprises masculine, feminine hair prohibiting crops
such as electrical razors, wet trim stuffs, along with trimmers, shears. Complementary to its
vital formation diversity, Shaver Shop vending many crops in a crossways the spoken looking
after, hair care, acupressure, air accomplishment, as well as loveliness groups. The general of
Shaver Shop’s clienteles are female, acquiring for collected themselves including others.

2FINANCIAL ACCOUNTING
Discussion
According to para 60, AASB 101 a corporation is bound to account their components
of balance sheet according to the dissimilar arrangements in the report. The chosen company,
Shaver Shop has classified its items properly and it is according to the criteria as per the
standard.
As per AASB 102, Shaver Shop Group, the valuation of inventory is done at lower
cost that also include Net realisable value. The inventory cost includes the purchase cost of
inventory, the shipping cost and procurement of inventory cost is added to it. The cost of
inventory is owned on every individual item of inventory (Alam et al. 2014).
The acquisition value of inventory is held after excluding all reductions, refunds and
other tax rebates imposed on the inventory. The cost of marketing is subtracted from the last
assess value of the inventory goods. The retailing price during the course of daily transaction
of goods is same as Net realisable value. The valuation method of inventory is done on the
basis of weighted average cost as per AASB 102.
According to para 34 and 35 of AASB 102, the inventories those are recognised as an
expenditures in that particular time as and when they are being wholesaled. The WDV is
being predictable as expenditures in that time during them transpire.
The expanse of inventories that is actually acknowledged as an expenditure on the
completion of the monetary year on the end date 30.06.2017 stood $83,095,092. The amount
was recognized as the price of goods being sold. There was a separate provision being
maintained for slow moving inventories by the Group. The provision amounted to $594,352
on the end of the financial year. Under cost of goods sold the capability of slow moving stock
is also identified.